Exam 12: The Supply of and Demand for Productive Resources

The Alpha Car Wash is known for the quality way in which every car is hand cleaned. The Beta Car Wash uses machines, so consumers are generally willing to pay a higher price for Alpha's services. The Auto Washers union at Alpha has just succeeded in obtaining a substantial wage increase. What will likely happen as a result?

The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?

If a college education did not increase worker productivity,

If a firm used only two factors of production, labor (L) and capital (K), which of the following conditions would be present if the firm was minimizing its cost of production?

A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is $5 per wash, and the price of workers is $60 per day. The car wash should hire a fifth worker if it would increase total production to at least

In a price-taker industry, the marginal revenue derived from the sale of an additional unit of the product is equal to the market price of the product. In these circumstances,

The following table indicates the reductions in total losses due to theft if a jewelry store hires additional security guards. If the security guards can be hired for $65 per day, how many guards should the shop hire?

Why is a college graduate more likely to get a job in management than is someone with only a high school diploma, even when the job has nothing to do with a specific type of education?

Troll Corporation sells dolls for $10.00 each in a market that is perfectly competitive. Increasing the number of workers from 100 to 101 would cause output to rise from 500 to 550 dolls per day. The marginal revenue product for the 101st worker is

The change in the total revenue of a firm that results from employing one additional unit of a factor of production is defined as the

If the cost of using skilled labor was twice the cost of using unskilled labor, and both were used by a profit-maximizing firm, the firm would adjust the quantity of each type of labor until

The figure below depicts a production function for a firm that produces cookies. Figure 12-4 Refer to Figure 12-4. With regard to cookie production, the figure implies

Other things constant, if the demand for a final product is quite elastic, the demand for a resource used to produce the product will tend to be

A convenience store is considering renting a surveillance camera from a security company that would prevent $100 in shoplifting per year. The yearly rental rate for the camera is $150. To maximize profits, the firm should

The marginal productivity principle says that a profit-maximizing firm should

If coal and oil are substitute inputs in the production of electricity, an increase in the price of oil

When the price of a resource goes up and firms seek other suitable resources, this is called the

Use the figure to answer the following question(s). Figure 12-2 If an unanticipated increase in demand in Figure 12-2 shifts the demand for accountants from D ₁ to D ₂, how will the higher level of demand influence the wages of accountants in the short run and the long run?

An apple orchard currently hires 10 workers. The owner estimates that hiring an additional worker would increase apple yields by 20 bushels per day. The price of apples is $15 per bushel. The owner should hire the extra worker if the wage rate is no greater than

Which of the following is an example of an investment in human capital?